Olam Palm Gabon first in Africa to achieve RSPO certification

Olam International (“Olam”) has crossed a significant milestone after its first palm plantation went from being the first in Africa to receive the Roundtable on Sustainable Palm Oil[1] (“RSPO”) New Planting Procedure verification to also becoming the first-ever new development in Africa to have its working plantation RSPO certified, including the mill.

The Awala plantation in Gabon was Olam’s first venture into upstream palm plantations in a joint-venture with the Republic of Gabon[2]. Development began in 2011 as one of two major projects for Olam Palm Gabon (OPG) in the country.

The plantation of 6,700 hectares (ha) lies within a 20,000 ha lease, the remainder of which is actively managed by Olam for conservation of biodiversity and forest carbon, and protection of water catchments, in fulfilment of RSPO requirements. This certification has single-handedly boosted Africa’s RSPO certified production hectares by 30 per cent from 21,666 ha[3].

The other major development for OPG is the Mouila plantation which lies to the south of Awala. In Mouila, OPG has already planted 31,000 ha in full compliance with RSPO guidelines and is progressing towards certification of that area in 2017 as planned. As in Awala, Mouila will also have a very significant area set aside for conservation requirements as per the RSPO guidelines.

Upon reaching full production capacity by 2023, the two plantations will deliver up to 22 metric tonnes of fresh fruit bunches (“FFB”) and 5.2 metric tonnes of oil per hectare, significantly complementing the existing stock of sustainable palm production in Africa.

Datuk Darrel Webber, CEO of RSPO said, “We commend Olam for embedding sustainability at the very start of their operations, it’s a good step to avoid any negative impacts to people, planet and profit. It is critical for all companies, especially those operating in a new frontier like Gabon, to plan and account for sustainability practices in land development processes from the start. We rely on all of our members in Africa to be outstanding ambassadors for sustainability, hopefully as models for sustainable transformation in Africa.”

Ranveer Chauhan, Managing Director and CEO of Palm Oil and Natural Rubber at Olam International, said, “Of all vegetable oils, palm oil produces the highest yields per hectare. Currently, about 17 per cent of the world’s supply of palm oil is certified as sustainable.

However, customer demand for sustainable palm oil is rapidly increasing and RSPO is targeting 100 per cent uptake of certified oil in Europe alone by 2020. Ensuring we are certified is therefore not just the right thing to do but makes sound business sense. Africa is the home of oil palm and many think it does not have the necessary infrastructure or governance to support high international standards. This certification shows what can be achieved for any new or old palm plantation development on the continent.”

The Awala plantation employs some 1,200 staff, more than 90 per cent of whom are Gabonese nationals. The land for the plantation ventures in Gabon was acquired on leasehold from the government and the well-recognised Free Prior and Informed Consent (FPIC) process was diligently followed. The social management plan was developed through active consultations and as per these plans, OPG has also supplied infrastructure and amenities to surrounding communities such as roads, lighting, water pumps and schools, as well as providing medical facilities.

Gagan Gupta, Country Head of Gabon at Olam International, said, “Our teams have worked hard to ensure that the development has brought social and economic benefits. With our partner, the Republic of Gabon, we are conscious of the environmental responsibility that we carry which is why across our palm plantations we have set aside a total of 61,000 ha for biodiversity. We were also the first to publish a fully independent High Carbon Stock analysis of our plantation footprint. We recognise that plantations can only remain sustainable if we maintain those high levels of commitment every day.”

Olam’s core purpose of Growing Responsibly – ensuring profitable growth in an ethical, socially responsible and environmentally sustainable manner - cuts across all product platforms and businesses. For its continual efforts in ensuring positive social impact through its core business strategy, Olam was recently recognised in Fortune’s 2016 Top 50 Change the World list.

Issued on behalf of Olam International Limited:

-in Asia by WATATAWA Consulting, 28 Maxwell Road #03-03 Red Dot Traffic Building Singapore 069120

-in Europe, Africa and USA by Gong Communications, 1 Blandford Street, London, W1UDA

For further information, please contact:

Olam Group Public Relations

Nikki Barber, General Manager, +44 207 484 8994, +44 7568 108555, nikki.barber@olamnet.com

Olam Investor Relations

Aditya Renjen, Vice President, +65 66031104, +65 96570339, aditya.renjen@olamnet.com

Chow Hung Hoeng, General Manager, +65 63179471, +65 98346335, chow.hunghoeng@olamnet.com

WATATAWA Consulting

Simon Pangrazio, Managing Partner, +65 90603513, simon.pangrazio@watatawa.asia

Josephine Chew, Associate Partner, +65 90610353, josephine.chew@watatawa.asia

Gong Communications

Sarah Nicholas, Account Director, +44 207 935 4800, sarahn@gongcommunications.com

Notes to Editors

About Olam International Limited

Olam International is a leading agri-business operating across the value chain in 70 countries, supplying various products across 16 platforms to over 16,200 customers worldwide. From a direct sourcing and processing presence in most major producing countries, Olam has built a global leadership position in many of its businesses. Headquartered in Singapore and listed on the SGX-ST on February 11, 2005, Olam currently ranks among the top 50 largest listed companies in Singapore in terms of market capitalisation and is a component stock in the S&P Agribusiness Index and the DAXglobal Agribusiness Index. In 2016 Fortune recognised Olam at #23 in its ‘Change the World’ list and Food Engineering ranked the company at #31 in its annual ‘Top 100 Food and Beverage Companies in the World’.

More information on Olam can be found at www.olamgroup.com.

Olam is located at 9 Temasek Boulevard #11-02 Suntec Tower Two Singapore 038989
Telephone: +65 63394100, Facsimile: +65 63399755.

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